Is State Tax Rates Hiking Up THE PRICE TAG ON Vaporizers?
The U.S. tobacco industry is fighting back against efforts by state regulatory bodies and consumers to regulate the sale of electronic cigarettes. While vaporizers have been around for a long time and are becoming more acceptable in mainstream American life, the tobacco companies are determined to fight these efforts vigorously. They’ve made millions of dollars attempting to defeat state taxing and regulation efforts. Now, they’re making their next move: challenging the legality of the taxation themselves. In a new legal filing, they’re claiming that the FDA over regulates and creates a “guaranteed” interstate transportation business. The filing happens to be being contested in the courts, and both sides expect a resolution at some point soon.
State taxation uprights vaporizers by regulating their sale. It is estimated that about twenty states have uprights to market vaporizer devices, including California, Colorado, D.C., Florida, Hawaii, Illinois, Maryland, Massachusetts, Montana, Nevada, New Hampshire, Oregon, Pennsylvania, and Washington. These states have become rapidly in recent years, so when a consequence, their cigarette tax rates are also growing rapidly. Several same states likewise have placed taxes on cigar and pipe tobacco. It appears that smoking just gets more expensive, and that is what the tobacco industry is shooting for.
In line with the filing with the FDA, the tobacco industry has been targeted unfairly. The tobacco industry does everything they can to fight regulation of vaporizer devices. As we’ve seen, the U.S. Supreme Court has multiple times ruled contrary to the FDA over-regulation of cigarettes. These rulings have left the door spacious to regulation of vaporizer devices. The FDA claims that over-regulation defeats the objective of regulating and controlling the use of vaporizers.
The truth is that the FDA itself isn’t even necessary to regulate or control these industries. Only state governments have that authority. It is the state governments that impose their very own taxes, and many states have imposed increased taxes in an effort to try to curb smoking. But the state governments are themselves at a disadvantage. They cannot regulate wholesale prices since these prices are regulated by state laws. They also can’t tax the merchandise at a higher rate than the federal government does.
Also, the FDA itself is not directly involved in the manufacturing of the vaporizer. Tobacco companies manufacture their own products, vapinger.com and they are the ones that get sued by the states and levied taxes. The FDA merely approves or denies manufacturer licenses based upon whether these manufacturers follow federal law. And when the manufacturer doesn’t, then your company doesn’t get its license.
So, the states that do impose taxes on vaporizer devices don’t get the benefit of having a federal regulator, or a manufacturer that is licensed by the state. So, instead, they find ways to increase taxes on the manufactures themselves! Which makes no sense. Why are these manufacturers being targeted specifically? There’s no real reason.
The Food and Drug Administration is the federal body responsible for regulating pharmaceuticals, health supplements and cosmetics. It gets the capacity to ban the production or sale of any chemical or substance that it determines is unsafe. So, why are states attempting to tell the FDA to focus on Vaping online users instead of tobacco manufacturers? The FDA knows that regulating weight loss supplements isn’t likely to work because there are no controlled diet pills currently in the marketplace. And, even if there have been, they couldn’t force food manufacturers to market diet pills containing things that are banned by state law.
So, instead, the states want to force the FDA to come up with some kind of rule or regulation which will require a manufacturer to market their devices in a specific manner, in accordance with state regulations. That makes no sense at all. In addition, it flies when confronted with the original purpose of the meals Drug and Administration Act. Why the FDA is targeting these devices is really a question that only experts in the FDA can answer.